a proportionate book for banking in the union and eurozone¶ffentlichungen... · 2019-04-11 · •...
TRANSCRIPT
-
A Proportionate Book for Banking in the Union and Eurozone Isabelle Vaillant, Director of Regulation, EBA
16 June 2016
-
THE EUROPEAN BANKING AUTHORITY (EBA)
Part I
2
-
Mission of the EBA
Development of European Single Rulebook – develop a single set of harmonised
prudential rules for financial institutions
throughout the EU and improve the functioning of
the internal market
Ensure an effective and consistent level of banking regulation and supervision
in the EU, promote convergence of supervisory practices and cross-border
and international supervisory cooperation for
banking groups
Identify risks and vulnerabilities across the EU
banking system, act as centralised disclosure hub for supervisory data on EU banks and protect public
values such as the stability of the financial system and of depositors and investors
Mission: To build a single regulatory and supervisory framework for the entire banking sector in the EU, so as to ensure an efficient, transparent and stable Single Market
3
-
BUILDING THE EU SINGLE RULEBOOK FOR BANKING
Part II
4
-
5
The building blocks of the EU Single Rulebook
-
The Single Rulebook & Handbook illustrated
Capital Requirements
Directive
Guidelines on remuneration
Q&A
Guidelines on supervisory
review process
Single Supervisory Handbook
TS on remuneration instruments
TS on passporting
6
Legislators Binding
EBA technical standards
Binding
EBA guidelines
Comply/explain
Handbook & Q&A
Non-binding use / market discipline
given disclosure
-
8
Summary of 2016 expected regulatory deliverables:
2016
TS 17
GLs 22
REPORTS 13
OPINIONS/ADVICE 5
PUBLICATIONS 6
TOTAL 64
- AMLD and Funds Transfer Regulation: 7 mandates - EMIR: 2 mandates - Audit Regulation: 4 mandates - BRRD coordination on subordination and Bail-in for capital instruments - New Securitisation Regulation: 7 mandates
Ensure other books are on track:
Advice/Opinion
RTS ITS Guidelines Report
2016 5 13 4 22 13
2015 9 10 6 2 17
2014 7 15 4 8 9
5
13
4
22
13
9 10
6
2
17
7
15
4
8 9
0
5
10
15
20
25
What we are doing in 2016
-
Advice/Opinion 9%
RTS 24%
ITS 7% Guidelines
38%
Report 22%
9
RTS
5 GLs on Internal Governance & GL on Internal Processes GL for communication between supervisor and auditors GL on disclosure of LCR GL on Enhanced Due Diligence GL on Risk Based Supervision GL on Simplified Due Diligence Guidelines on Connected Clients Guidelines on accounting for expected credit losses GLs on PD computation GL on corrections to modified duration for debt
instruments GL on Qualified Holdings GL on review of the permission to use internal
approaches GL on unencumbered assets GL on LGD GL on default of an obligor Pillar 2 Guidelines and Recommendation on excessive
CVA Risk GL on Implicit Support
Annual report on securitisation retention rules 2016 2 JAT Reports Report on additional information on AE disclosure Report on SMEs Report on the functioning of the covered bond
frameworks under the best practice principles Report on interaction with EMIR own funds requirements for exposures to a central
counterparty Second Report on Overreliance on external Ratings Report on the Remuneration Benchmarking Exercise
(Data for 2014) Report on benchmark diversity practices Review clause on remuneration close cooperation with
EU COM Standard Templates AT1 Report on leverage ratio calibration
RTS on criteria for intragroup flows RTS on central contact points RTS on assessment methodology for
market risk RTS on Authorisation of credit
institutions RTS on disclosures of unencumbered
asset RTS on mitigating risk of third
countries’ prohibiting the application of equivalent AML/CFT standards
RTS on Prudent Valuation (COREP Templates)
Update RTS on Proxy spreads for CVA 2 RTS on Risk weights for mortgage
lending RTS on risk weights for specialised
lending exposures RTS on Exclusion of CVA for 3rd
country NFC RTS on Definition of default –
Thresholds of past due items
ITS amending Commission Implementing Regulation on additional monitoring metrics amending ITS on AMM
ITS on mapping of external credit assessments for securitisation
ITS on Authorisation of credit institutions
ITS on common procedures, forms, templates
Quantitative and qualitative analysis of IFRS 9 – 2016
Joint Opinion on ML/TF risk and the financial sector
CET1 list Covered Bonds Opinion on national
waivers Risk weights for mortgage lending
EBA Regulatory products expected in 2016
-
THE SINGLE RULEBOOK IMPLEMENTED
Part III
10
-
11
Interactive Single Rulebook (1)
-
12
Interactive Single Rulebook (2)
-
Q&A: a more and more prominent tool for day to day supervision
13
Q&A Process: Q&As received /published (May/16) Status Total 2015 2016
Total (CRR-CRD and BRRD Q&As) 2550 845 200
Rejected/Deleted 1000 220 25
Finalised & Published 910 245 85
of which: Supervisory Reporting of which: BRRD
415 70
90 65
40 5
Under Review Total 840 485 170
Under Review – Reporting Q&As 555 265 90
Under Review – Regular Q&As 175 130 55
Under Review – BRRD Q&As 110 90 25
0 10 20 30 40 50 60 70 80 90
Regular Q&A Received Regular Q&A Published
0
20
40
60
80
100
Mon
th
Aug
-13
Oct
-13
Dec
-13
Feb-
14
Apr
-14
Jun-
14
Aug
-14
Oct
-14
Dec
-14
Feb-
15
Apr
-15
Jun-
15
Aug
-15
Oct
-15
Dec
-15
Feb-
16
Apr
-16
Reporting Q&A Received Reporting Q&A Published
0
10
20
30
40
50
Jan-
15
Feb-
15
Mrz
-15
Apr
-15
Mai
-15
Jun-
15
Jul-1
5
Aug
-15
Sep-
15
Okt
-15
Nov
-15
Dez
-15
Jan-
16
Feb-
16
Mrz
-16
Apr
-16
Mai
-16
BRRD Q&A Received BRRD Q&A Published
A shift towards regulatory monitoring (1)
-
14
Capital definition monitoring:
• CVA Monitoring Report – February 2015 • CVA QIS – February 2016 • Risk Retention Report, due diligence and disclosure – April 2016
• CET1 list updates – July 2016 • AT1 monitoring - July 2016 • AT1 Term Sheet preparation – late 2016
Market and Securitisation risks:
Market Infrastructures: • JAT analysis and report on ISDA SIMM – BoS Summer 2016
Remuneration Policies: • Opinion on the use of Allowances and follow-up report published - Nov 2015
• Report on approved higher ratio published - Nov 2015 • Report on Benchmarking of remuneration and High Earners - 2014 data–Report
published and submitted to EU COM – March 2016
A shift towards regulatory monitoring (2)
-
EBA AND ITS ROLE FOR THE EUROZONE
Part IV
15
-
16
A basis for the Union and Eurozone
-
EBA and SSM - Implications
EBA has a unique position thanks to its EU-wide focus
Increased importance of:
• Development of the Single Rulebook applicable to all institutions in the EU – Same rules apply for those in the Banking Union to those outside it
• Consistency of supervisory practices across the EU - Single Supervisory Handbook
• Cooperation between home and host authorities – mediation, colleges • Cooperation with the ECB
Implications for EBA: • Governance changes
Voting Breach of Union Law/mediation panels Participation of SSM/Single Resolution Board in EBA work
17
-
EBA AND PROPORTIONALITY
Part V
18
-
Single Rulebook – Single but never uniform (1)
19
General principle of EU law:
“the Union must always observe the principle of proportionality when exercising its competences deriving from the principle of conferral (Article 5(4) TEU)”: Case C-62/14 Gauweiler (OMT), A-G Villalόn Opinion [161]
“the principle of proportionality requires that acts of the EU institutions be appropriate for attaining the legitimate objectives pursued by the legislation at issue and do not go beyond what is necessary in order to achieve those objectives”: Gauweiler, CJEU [67]
Principle of Proportionality requires that measures:
do not exceed the limits of what is appropriate and necessary in order to attain the objectives legitimately pursued by the legislation in question when there is a choice between several appropriate measures, recourse must be had to the least onerous, and the disadvantages caused must not be disproportionate to the aims pursued
Proportionality is a Legal Requirement
-
Revising the CRR
• Reform requires large repairs
• We caution pause for thought before revising the CRR
• There should be considered reflection around our thinking or proportionality and simplification given the current importance and complexity,
• The level of prudence should not be diminished : for banks all distance to failure should be maintained the same
20
Single Rulebook – Single but never uniform (2)
Heightened attention due to complexity issues Feedback to Commission call for Evidence:
• Gold platting • Reporting • Regulatory mismatch • Compliance costs • A simplified rulebook
Erosion of the Single Rulebook
Tailoring Dimensions of Proportionality
• Size • Business Models • Interconnectedness • Legal Form • Scope and Complexity of
Activities
Proportionality is a Supervisory Need
-
EBA approach to proportionality
Simplification without due attention to risk
Exemptions which would render us blind to ongoing and future risk
Unlevel playing field and market fragmentation
21
Proportionality is not:
-
DRIVERS AND FUTURE LANDSCAPE
Part VI
22
-
Conclusion
23
A more legible level 1
Consistent approach in treatment of rules from legislation to application
Substance in level 1 – Detail in level 2
Proportionality
-
EUROPEAN BANKING AUTHORITY
Floor 46, One Canada Square, London E14 5AA
Tel: +44 207 382 1776 Fax: +44 207 382 1771
E-mail: [email protected] http://www.eba.europa.eu
A Proportionate Book for Banking in the Union and Eurozonethe European banking authority (EBA)Mission of the EBABuilding the EU Single Rulebook for banking�Foliennummer 5The Single Rulebook & Handbook illustratedFoliennummer 7What we are doing in 2016EBA Regulatory products expected in 2016�the single rulebook implementedInteractive Single Rulebook (1)Interactive Single Rulebook (2)Q&A: a more and more prominent tool for day to day supervisionA shift towards regulatory monitoring (2)EBA and its role for the eurozoneA basis for the Union and EurozoneEBA and SSM - ImplicationsEba and proportionalitySingle Rulebook – Single but never uniform (1)Single Rulebook – Single but never uniform (2)EBA approach to proportionalityDrivers and future landscapeConclusionFoliennummer 24